Dublin-based Esat
esat
told its shareholders to take no action on the bid, and said its board would make a further announcement "in due course." Newtel said a meeting with Esat chairman and chief executive Denis O'Brien Tuesday concluded without an agreement. Stockholm-based Newtel, the company created by the recent merger of Sweden's Telia AB and Norway's Telenor SA, said it offered $72 cash for each Esat American Depository Share, valuing the company at about $1.59 billion. Newtel said the offer represents a 24-percent premium to the ADS shares' closing price of $58 on Monday.

Esat shares closed Tuesday in New York at 65 1/16, up 7 1/16, or 12.2 percent.

"As part of the Newtel Group, we believe that Esat would be able to expand more rapidly the range of products and services it offers, to the benefit of Irish consumers," said Tormod Hermansen, chief executive officer and president of Newtel.

"We tried to obtain a recommendation for our offer," Hermansen said. "As this was not forthcoming, we decided to put our offer directly to shareholders."

Esat and Newtel are already partners in one sense -- they each own 49.5 percent of Esat Digiphone, one of two GSM-based mobile phone operators in Ireland. And Newtel is eager to expand there. "The Irish market is important to Newtel's international strategy," the company said.

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